Thread: Is the baht slowly being weakened?

Originally Posted by Loy Toy

I hope so mate and for the sake of the Thai exporters.

Yesterday rate of 36.5 too the greenback means that it has depreciated by about 1.5 baht and over the last wekk which is significant.

you already said 36.5 mate. pom is winding you up!

Originally Posted by madjbs

Originally Posted by larvidchr

What would happen to Tarisa (BOT governor) if she suddenly stopped using taxpayer money (the Thai reserves) to support the Bath ? If the Bath was floated and went down 20% all the Thai billionaire thugs would suddenly loose millions, how many days you think she would survive that ? I honestly don't think she has much of a choice but keep supporting the Bath untill the coffers run dry, wether it is good for the Country as a whole or not.

The BOT is not supporting the Baht and the foreign reserves are not tax payers money.

I saw with my own eyes Tarisa clearly stating at a meeting in the Foreign Correspondents Club that the BOT was supporting the Bath attempting to control the speed with which the Bath moved.

The reserves is the property of the people of Thailand, how can you not understand that??

Yes, they manipulate the baht to avoid sudden shocks etc.. It is called a managed float exchange rate system, perfectly normal and practiced by many countries.

They do NOT maintain the baht at 20% above it's real rate for any length of time (as claimed by larvidchr) . To do that would take massive amounts of dollars, and from the foreign reserve stats, that is clearly not the case as they have remained fairly stable, only increasing slightly, which is as to be expected with a BOP surplus.

This is yet another case of people repeating something enough to make it become true.

larvidchr, you claimed the foreign reserves are tax payers money, this implies that the money in the foreign reserves came from peoples taxes. You must understand that this is completely wrong?

Originally Posted by larvidchr

you are nitpicking when you very well know that the word Taxpayers just is an analogy for the working people.

No I am not nitpicking, when you say "taxpayers money" it generally means tax money collected by the government. So you were wrong.

English is obviously not your first language, so I don't blame you for implying the wrong thing, but, don't turn it around and try and blame me instead.

If I was nitpicking I would tell you that the foreign reserves belong to the central bank which in turn belongs to ALL Thai citizens. Nothing to do with tax payers at all.

Originally Posted by madjbs

Originally Posted by larvidchr

you are nitpicking when you very well know that the word Taxpayers just is an analogy for the working people.

No I am not nitpicking, when you say "taxpayers money" it generally means tax money collected by the government. So you were wrong.

English is obviously not your first language, so I don't blame you for implying the wrong thing, but, don't turn it around and try and blame me instead.

If I was nitpicking I would tell you that the foreign reserves belong to the central bank which in turn belongs to ALL Thai citizens. Nothing to do with tax payers at all.

That is what I meant so OK then

Originally Posted by Blake7

Did it ever occur to you that it might actually be the sterling which is strengthening rather than the baht weakening

Strange but Rothscilds Bank is buying heavily into STERLING, this Jewish run bank has been very successful for the last 200 years as to where to put your money safely

Feb.26 (Bloomberg) - Thailand's baht slid to its lowest level in more than two years on speculation the central bank will allow further weakness to help exporters and avert a possible recession this year. Bonds declined.

The currency fell 0.7 percent this week, the second-worst performance among Asia's 10 most-active currencies, after Duangmanee Vongpradhip, assistant governor of monetary policy at the Bank of Thailand, said there is "higher risk" the economy will contract in 2009. The bank yesterday cut its benchmark.

The baht fell o.5 percent to 35.96 to the dollar as of 5:20 PM in Bangkok, according to data compiled by Bloomberg, after touching 36.01 earlier, the weakest since Jan.23, 2007. The currency may fall to 37 by the end of June, Kowalczyk said.

The central bank yesterday said the drop in global demand has "adversely affected regional countries including Thailand through a market contraction in exports".

Thailand's overseas sales, which account for 70 percent of gross domestic product, last month plunged 26.5 percent from a year earlier, according to the commerce ministry. Reduced shipments curbs exporters' demand for baht.

The yield on the benchmark 5.625 percent bond maturing in January 2019 climbed 8 basis points to 3.697 percent, according to the reference yield from the Thai Bond Market Association.

The Bank of Thailand may cut its interest rate less that the previous three times, as the global recession may blunt the effectiveness of monetary policy, deputy Governor Bandit Nijathaworn said today.

"The rate fell quite fast in the past three meetings," he said. "It won't be as much going forward, as monetary policy has its own limitations in supporting growth".

The baht lost 3.5 percent versus the dollar this year, a less marked decline than the South Korean won's 17.1 percent drop and the Indonesian rupiah's 9 percent slide, Bloomberg data show. The Malaysian ringgit declined 5.9 percent.

"The baht should be considered to be overvalued on a relative basis versus its regional peers," Kowalczyk said. "It seems we should brace for a faster decline in the value of the currency."

Thailand's economy shrank 4.3 percent in the forth quarter from a year earlier, its first contraction in a decade, the government reported this week.

Food for thought..........

Originally Posted by DrAndy

It should be over 40 to the $ if the true value of the Baht is recognised

as for any other currencies, they are all at differing exchange rates to the $ on different days, so will show some differences

so if the rate goes up against the pound, that prob means the pound has got stronger against the dollar. The baht tends to be tied to the US$ but they are letting it gradually slip

Certainly throughout the last year, most strong currencies have have gained against the US dollar. Expect the dollar to weaken amongst most exchanges - the jig is up when observing the strength and influence of the US. Another decade {even less}, the world will be looking for another standard.

$ is king, and most likely see 40-45 on the next 3-6mo. Most currencies have dropped against the $ and most likely will continue - see yank $ as the standard for decades to come.

"The baht should be considered to be overvalued on a relative basis versus its regional peers," Kowalczyk said. "It seems we should brace for a faster decline in the value of the currency."

I would find that most bracing indeed.

Originally Posted by britmaveric

$ is king, and most likely see 40-45 on the next 3-6mo. Most currencies have dropped against the $ and most likely will continue - see yank $ as the standard for decades to come.

Personally, I'd like to see the dollar rise to B40-B45, as you've spectulated towards. Positive thinking Brit!

RS , the euro was last year 40bt to the euro but we had 67/69 to the pound so the euro has not been affected much .

^ I dont know where you got that info on the Euro from it was never as low as 40 Baht. Average for the year 2008- 48,3 Baht to 1 Euro

Originally Posted by britmaveric

$ is king, and most likely see 40-45 on the next 3-6mo.

I think you have been saying this for the last 2 or 3 years

we will be lucky if it hits 38 in the next 3 months,

OK all you financial god wannabe's why is the pound creeping back up? Its at 54.5+ now.

^ Gordon Brown sucking cocks and about to leave office, that's good news for the UK

Come on bhat keep going up .